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A screenshot from Noom’s website (Sherwood News)
A screenshot from Noom's website. (Sherwood News)

Lilly cuts partnership with Noom in latest salvo in war on compounded GLP-1s

The end of the partnership marks the latest schism between drugmakers and telehealth providers.

Eli Lilly has terminated its partnership with Noom after the telehealth platform continued to sell knockoff versions of blockbuster GLP-1 drugs.

Lillys pharmacy provider “has notified Noom that it is terminating Noom’s LillyDirect platform integration,” a spokesperson for the company told Sherwood News on Friday. The partnership with Noom was announced in March and allowed patients on the platform access to vials of Lillys blockbuster weight-loss drug Zepbound, which are cheaper than the pens typically sold.

Noom has recently promoted “microdosed” GLP-1 treatments, using compounded versions of the diabetes and weight-loss medication. Lilly has previously said that part of its deals with telehealth partners are that they dont continue selling knockoff versions of GLP-1s.

Noom did not immediately respond to a request for comment.

Zepbound vial
Zepbound vials (Eli Lilly)

Telehealth companies like Hims & Hers and Noom began selling copies of the popular weight-loss drugs while they were in shortage but were supposed to stop selling them at scale when supply issues waned earlier this year.

Lilly and Novo Nordisk, which makes rival weight-loss drugs, struck deals with several telehealth companies in what they described as an effort to transition patients who were on compounded versions of their drugs to the name-brand version. But some telehealth companies, which can make more money selling knockoffs compared to shifting customers to the name-brand version, have quietly continued to offer compounded versions.

The end of Lillys partnership with Noom marks the latest schism between drugmakers that manufacture the massively popular drugs and the telehealth companies that have helped expand their reach.

Novo Nordisk has partnerships with telehealth providers. In June, Novo abruptly said it was calling off its deal with Hims & Hers and accused the company of “illegal mass compounding and deceptive marketing.”

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How Tesla quietly wound up owning a small piece of SpaceX

Tesla is converting its recent $2 billion investment in Elon Musk’s AI company, xAI, into a small ownership stake in SpaceX — just months before the rocket maker’s highly anticipated IPO.

Here’s what happened: Tesla announced its xAI investment in late January, after a shareholder proposal to invest fell short last year. Several days later, xAI merged with SpaceX. All three companies are headed by Musk.

Now, regulatory filings with the Federal Trade Commission show Tesla converting that investment into a small stake in SpaceX, formalizing the financial link between the companies ahead of the rocket maker’s IPO. SpaceX is expected to go public this year at a valuation some speculate could top $1.75 trillion, potentially making it the biggest company to ever go public. (The current record holder, Saudi Aramco, went public at a more than $1.7 trillion valuation in 2020.)

While the size of Tesla’s stake wasn’t available, Bloomberg reports that the investment would equate to ownership of less than 1%.

While SpaceX and Tesla have engaged in related-party transactions over the years, Tesla had not previously disclosed an equity investment in SpaceX.

Now, regulatory filings with the Federal Trade Commission show Tesla converting that investment into a small stake in SpaceX, formalizing the financial link between the companies ahead of the rocket maker’s IPO. SpaceX is expected to go public this year at a valuation some speculate could top $1.75 trillion, potentially making it the biggest company to ever go public. (The current record holder, Saudi Aramco, went public at a more than $1.7 trillion valuation in 2020.)

While the size of Tesla’s stake wasn’t available, Bloomberg reports that the investment would equate to ownership of less than 1%.

While SpaceX and Tesla have engaged in related-party transactions over the years, Tesla had not previously disclosed an equity investment in SpaceX.

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